EC APPROVES WWL’S ACQUISITION OF HYUNDAI RO-RO ARM
The European Commission has cleared the joint acquisition by Sweden’s Wallenius Lines and Norway’s Wilhelmsen of the deep-sea car-carrier business
of the Korean company Hyundai Merchant Marine.
The EC said that it was originally concerned that the deal might significantly reduce competition and lead to higher prices for the transport of cars between Europe and the Near East.
“But Wallenius and Wilhelmsen offered to withdraw from the WALLNYK shipping conference with Nippon Yusen Kaisha, one of their main competitors, which fully removes these concerns,” the Brussels-based body said.
The EC said that the termination of the WALLNYK agreement and the fact that NYK will become an independent competing supplier in the relevant trades “re-establishes the competitive situation prevailing prior to the proposed merger on the Mediterranean-Near East trade and substantially reduces the impact of the merger on the Northern Europe-Near East trade.”
Wallenius and Wilhelmsen provide their car carrier services through the 50/50 joint venture Wallenius Wilhelmsen Lines.
Wallenius and Wilhelmsen will rename Hyundai’s car-carrier arm “Ro-Ro Korea.”